Opinion | Show us the money, Qianhai tells bidders for third site

Foreign investors have given a warm reception to Shenzhen's development of the Qianhai special economic zone as a testing ground for the free convertibility of the yuan. But it will be an entirely different matter when they are asked to put in real money to transform the 15-kilometre strip into the "Manhattan of the Pearl River Delta".

On Friday, the third commercial site in the zone is to be auctioned off, providing an immediate gauge of the level of confidence Hong Kong developers have in the project. These developers boast of their more extensive experience compared to their mainland peers and their ability to build Shenzhen's financial centre into a pilot zone for new collaboration with Hong Kong.

Interested bidders for the plot, however, face tougher requirements from the Qianhai Authority, unlike the first two commercial sites that were offered for sale to developers with annual turnover of 10 billion yuan (HK$12.6 billion).

Two weeks ago, the first two sites were sold to Shenzhen-based Excellence Group, the mainland's 48th-largest developer by sales.

The authority did not mince words in stating its developer of choice for the third plot. It prefers a property giant with strong experience in developing top-notch office buildings and an extensive network with international companies.

To ensure the rapid success and international recognition of the Qianhai special economic zone, the sale of the site, which is being offered at a minimum bid of 6.72 billion yuan, will be restricted to Hong Kong-listed companies with a market capitalisation of HK$40 billion or more, according to the land sale document. The site is designated for the development of office, retail and hotel space and serviced apartments over six towers, each ranging from 150 to 260 metres high.